There are several good reasons why it makes ample sense to register your specialist. The first basic reason is to safeguard Online One Person Company Registration in India‘s own interests but not risk personal belongings to the purpose of facing bankruptcy in case your business faces a crisis and also is forced to seal down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if the company is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited enterprise. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, 1 wishes to transfer their shares to another it’s easier when group is authorized.
Very there’s always a dilemma as to when the corporate should be registered. The solution to which is, primarily, in case business idea is sufficiently good to be converted into a profitable business or truly. And if the answer to that is a confident and a resounding yes, then it is time for one to go ahead and register the startup. And as mentioned earlier on it is always beneficial to create it happen as a preventive measure, before you will be saddled with liabilities.
Depending upon the type and size of the business and when there is want to inflate it, your startup could be registered as the many legal formats with the structure on the company accessible to you.
So i want to first educate you with the required information. The different company structures available are:
a) Sole Proprietorship. That’s a company managed or run by only individual. No registration is needed. This is the method to adopt if you should do it for yourself and the objective of establishing the organization is gain a short-term goal. But this puts you at risk to losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. In the a Partnership firm, as the laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a associated with trust within partners. But similar together with proprietorship there could risk of losing personal assets in any eventuality.
c) OPC is single Person Company in that the company is really a separate legal entity which usually effect protects the owner from being personally liable for any damages.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and a business and the partners are not personally prone to lose their personal holdings.
e) Limited Company that of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there is no upper limit; the quantity of directors should be at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 using a maximum maximum of corporation. The number of directors must be 2.